A typical home in the Nashville-Davidson–Murfreesboro–Franklin metro area costs $192,200, higher than in Tennessee as a whole, where the typical home is worth $150,600. Nashville’s median home value is also the highest of any metro area in the state.
The price of a typical Nashville home is, however, roughly similar to the national median home value of $194,500.
Residents of areas with moderately priced real estate also tend to have relatively average incomes. In Nashville, however, the typical household earns $57,985 annually, higher than both the $47,275 median household income statewide and $55,775 national figure. Nashville has the highest median household income of any Tennessee metro area.
Home values tend to be higher in dense, urban areas, where space is limited and land is more expensive as a result. The priciest homes in the country are in cities along the East and West Coast, where population density is also among the highest nationwide. In the Nashville-Davidson-Murfreesboro-Franklin metro area, there are 265 people per square mile, slightly similar to the average urban population density of 283 Americans per square mile across all metro areas nationwide. Nashville has the second highest population density of any Tennessee metro area.
Home values in the metro area may also be affected by the condition of the local job market. People often relocate for occupational reasons, and an area with lower unemployment is more likely to have more expensive real estate. The Nashville-Davidson-Murfreesboro-Franklin metro area’s unemployment rate, however, was 3.6% as of August 2016, lower than the 4.9% jobless rate nationwide.
Improved unemployment among the Nashville workforce over the last five years — like most of the country — may have helped increase home values as a result. Since August 2011, the Nashville unemployment rate has fallen by 4.1 percentage points. Over the same period, home values in the metro area increased by 12.7%. Nationwide, the unemployment rate improved by 4.1 percentage points as the median home value increased by 12.0%.
Areas with moderate home values are often fairly well-educated. In addition to the better-paying jobs that educated residents often hold, the presence of good schools and universities are likely to increase demand for nearby homes. In Nashville, 33.6% of adults have at least a bachelor’s degree, a larger share than the 30.6% of Americans with similar education nationwide.
|10||Santa Rosa, CA||$512,100|
|9||Oxnard-Thousand Oaks-Ventura, CA||$528,700|
|8||Los Angeles-Long Beach-Anaheim, CA||$540,600|
|7||Santa Maria-Santa Barbara, CA||$547,600|
|4||Urban Honolulu, HI||$629,900|
|3||Santa Cruz-Watsonville, CA||$668,300|
|2||San Francisco-Oakland-Hayward, CA||$718,400|
|1||San Jose-Sunnyvale-Santa Clara, CA||$823,700|